Gasoline prices set to rise across Iraq

BAGHDAD — Gasoline prices across Iraq are set to increase on May 1 affecting both regular and premium octane varieties, according to an announcement by a Ministry of Oil.

An official letter from the ministry (No. 24213) specified the price per liter of regular gasoline would increase from 650 dinars (about $0.50) to 850 dinars (approximately $0.65). Similarly, the price for premium gasoline would jump from 1,000 dinars per liter ($0.76) to 1,250 dinars (about $0.95).

Revenue from the price hikes will be directed back to the Iraqi Oil Production Companies, a subsidiary of the oil ministyr, and subsequently transferred to the federal government’s Ministry of Finance.

Representatives of the Iraqi protest movement Nazel Aakhed Haqqi said they anticipated a response from the public in light of the price increases, adding that any resulting protests would be peaceful and aim to advocate for social justice and combatting corruption.

Iraqi economist Mahmoud Dagher defended the government’s decision, arguing that the current subsidy system unfairly favors the wealthy who, he alleged, use higher-octane fuel for luxury vehicles. Dagher, a former Central Bank of Iraq official and academic, claimed the subsidies drain approximately 3 trillion Iraqi dinars ($2.3 billion) annually from potential social projects.